A STUDY ON THE IMPACT OF PERCEIVED AUTHENTICITY AND TRUST ON PURCHASE INTENTION- INFLUENCER-OWNED BRANDS VS CORPORATE BRANDS

Abstract

The fast-changing nature of digital platforms and social media has greatly impacted the world of marketing, leading to the emergence of a new type of brand called influencer-owned brands. Influencers, who used to build their following by creating great content, are now using their individual brand image, credibility, and fan interactions to produce their own brands. This trend has brought about a clear rivalry between influencer-owned brands and corporate brands, affecting consumer decision-making processes.

In spite of the rising popularity of influencer-owned brands, one important issue still remains – their ability to impact consumer purchase behavior. Influencers have been proven to drive consumer awareness and interaction, but it is yet to be determined if consumers trust these brands enough to purchase from them. To fill this research void, this study will explore the effects of authenticity, brand trust, social influence, and price on purchase intent. The present research, titled “A Study on the Impact of Perceived Authenticity and Trust on Purchase Intention: Influencer-Owned Brands vs Corporate Brands,” primarily focuses on understanding consumer perception and behaviour in the context of these two competing brand categories. The study seeks to evaluate whether influencer-owned brands are able to match or surpass corporate brands in terms of trust, authenticity, and overall consumer acceptance.

A descriptive research design was used during the study. Primary data collection was performed using a structured questionnaire developed according to the criteria set by a five-point Likert scale. The following measures have been included in the questionnaire: awareness, perceived authenticity, brand trust, social influence, price perception, and purchase intention. A total of 150 respondents were chosen randomly using convenience sampling, and the obtained results were processed using Microsoft Excel. Data analysis techniques, including descriptive statistics, correlation analysis, and multiple regression analysis, were utilized.

As can be seen from the results obtained, the factor that has the highest impact on consumers' awareness and perception is social influence. Social media trends, peer behaviour, influencers, and other factors significantly affect the awareness of consumers. Nevertheless, the impact of social influence on purchase intentions may be rather low because people often get persuaded to buy things that do not correspond to their needs and preferences.

It should also be noted that perceived authenticity is moderate. In other words, consumers relate well to influencers; however, they are skeptical towards the products that influencers promote and brands that they own. Brand trust is one more variable that impacts consumer awareness and perception. As it has already been mentioned above, corporate brands enjoy higher levels of trust because of their reputation and consistency.

Finally, price perception can be highlighted as one more variable that impacts consumer awareness and perception. In this case, people tend to make purchases based on the principle of value for money; they may be interested in products promoted by influencers but will not buy them if the prices are too high.